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Nestlé announces strong performance in UK & Ireland as core brands meet changing needs of UK consumers

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UK Press Release

Nescafe Dolce Gusto on the line

 

  • NESCAFÉ increased its overall share of the UK & Ireland coffee market by 1.7% in 2013
  • 32% growth in sales of NESCAFÉ DOLCE GUSTO pods contributed to this success as UK consumers look for coffee-shop choices in their own homes
  • Nestlé Confectionery continued to deliver strong top-line growth
  • KitKat 2 Finger became Fairtrade and Quality Street remained the number one Christmas confectionery product

Following the announcement of Nestlé SA’s global financial results for 2013, Fiona Kendrick, Nestlé UK & Ireland Chairman & CEO has announced a strong performance in 2013 as major investment in UK manufacturing comes on-stream.
 
Fiona Kendrick said: “2013 was a challenging year but Nestlé UK & Ireland performed well in its core businesses of Beverages, Confectionery and Food.” 

“UK consumers are changing the way they shop and it is reshaping the UK food industry.  We are responding to this new reality, particularly in fast growing channels such as online shopping, convenience stores and discounters.  Innovation continues to be key in growing our business and we are offering our consumers new products to meet their changing needs.

“Our NESCAFÉ business is a great example. The growth of coffee-shops in the high street is introducing consumers to new tastes.  As a result, more people want to experience  coffee-shop varieties at home, but at a fraction of the cost.  NESCAFÉ DOLCE GUSTO, NESCAFÉ AZERA, and our recently launched NESCAFÉ GOLD BLEND Barista Style, provide this choice and quality and are growing very successfully.

“Our £310 million investment programme in our UK coffee factories is also becoming operational, so we have world-class manufacturing for the future here in the UK.”

 

Highlights for Nestlé UK & Ireland in 2013 include:

 

Nestlé Confectionery:

Yorkie bar

  • In confectionery, the stand out performance was YORKIE, growing by 31.6% in 2013 (value sales %) compared to 2012.  The brand has seen a renaissance over the last two years growing at over 50% in the last two years fuelled by its return to TV and launch of YORKIE ‘Man Sized Buttons’.   BREAKAWAY (21.2%) and MILKY BAR (7.4%) were the other big winners.  KITKAT ‘Choose a Chunky Champion’ campaign returned for its second year with KITKAT Chunky Mint voted as champion.   QUALITY STREET grew 3.5% due to a strong Christmas and launch of the QUALITY STREET MATCHMAKERS sharing bags.

Nestlé Beverage:

  • NESCAFÉ AZERA, the instant barista style coffee, saw 160% value growth in 2013 as three new varieties were introduced early in 2013: Intenso, Cappuccino and Latte. NESCAFÉ AZERA was multi-award winning and Which? declared it “the clear winner in our taste test”
  • Nestlé NESQUIK had a bumper year growing by nearly 8% in 2013.  Boosted by vitamins and minerals found in milk, as well as having no artificial flavours, colours, preservatives or sweeteners, the brand benefited from the 2012 launch of new NESQUIK Hot Chocolate, which delivered incremental growth to the brand.

Nestlé Food Division:

  • MAGGI brings families round the table to enjoy fresh and nutritious ingredients prepared in a simple way. It continues to shine with 45.1% share of the modern cooking segment since its highly successful launch of So Juicy in 2011 and with the latest successful innovative launch of So Tender in 2013.

Nestlé Sister Companies:

  • Nestlé Waters finished 2013 with a record volume of over 300m litres, supported by the sustained hot weather of the British summer.  This caps five years of double digit growth.  Our key local brands, NESTLÉ PURE LIFE® and BUXTON® continued to deliver throughout 2013 with NPL consolidating its role as the healthy hydration choice for families with growth of +17.0% in the year, and Buxton maintaining its premium position as the UK’s No. 1 local mineral water with growth of 14.2%
     
  • Nestlé PURINA delivered another sound performance in 2013. This success was reinforced by innovative product launches and campaigns that drove growth for much loved PURINA brands such as FELIX®, BAKERS®, GO-CAT®, GOURMET® and PRO PLAN®.

(All figures from Symphony IRI Group Jan to Dec 2013, Total IRI Grocery)